Melbourne-based construction and development company Pellicano has secured Australia’s largest serviced apartment brand, Quest, for its next development in Brisbane.

The Pellicano family, whose wealth is estimated at well over $300 million by the BRW Rich List, has $150 million in developments planned for the Queensland capital.

Quest will take a 10-year lease in Pellicano’s $38 million serviced apartment project in Woolloongabba. Construction of the nine-storey building with 70 apartments will begin next month.

Quest chief executive
Paul Constantinou
said the company’s investment in Woolloongabba is based on what it sees as increased demand from business travellers for accommodation outside of traditional city locations.

“The accommodation market in Woolloongabba is currently under-supplied, with demand driven largely by investment in retail, education and health," Mr Constantinou said.

Pellicano joint managing director Nando Pellicano said that, regardless of the Quest lease, which reduced exposure to occupancy fluctuations, he was confident of a steady recovery in residential markets in Brisbane.

“We are not saying it’s going to come back straight away," he said. “The prices haven’t had the same growth that Melbourne has had and that might start happening soon."

At Pellicano’s separate $43 million Eastwood Apartments tower, also at Woolloongabba, 75 per cent of its 82 apartments have sold, reaping more than $31 million.